China’s new structural reforms during the global economic slowdown improved the likelihood of macroeconomic stability in the medium term, Tan said in a statement.

The measures also meant the Chinese government was less likely to incur heavy liabilities that could affect its ability to repay debts, the agency said.

The ratings reflect Beijing’s low debt level, strong asset sheet and “exceptional growth prospects", it said, adding those strengths outweighed the potential for liabilities in the banking system if there were an extended economic slowdown.

“We may raise the ratings again if structural reforms lead to sustained economic growth that significantly lifts the average income level," Tan said.